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Money Laundering and Terrorist Financing
| Purpose: | To draw barristers' attention to their obligations in relation to countering money laundering and terrorist financing, and to make practical suggestions in that regard |
|---|---|
| Scope of application: | All practising self-employed barristers |
| Issued by: | The Ethics Committee |
| First reviewed: | 01/01/2016 |
| Last reviewed: | 01/01/2024 |
| Status and effect: | Please see the notice at the end of the 'Core Points' section of this document. This is not "guidance" for the purposes of the BSB Handbook I6.4. |
Bar Council “Money Laundering and Terrorist Financing” Document
This guidance assists barristers in determining and navigating their obligations under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (as amended) and related legislation. This guidance has been approved by HM Treasury. You are not required to follow this guidance but doing so will make it easier to account to regulators and others for your actions.
Pages 1-4 sets out when considerations of money laundering and terrorist financing apply to self-employed barristers.
The Important Notice at the end of this page relates to this document.
Addendums to Money Laundering and Terrorist Financing Guidance
The Bar Council of England and Wales, the Bar Standards Board, the Bar Council of Northern Ireland and the Faculty of Advocates in Scotland have prepared two addendums to the 2021 edition of the Legal Sector Affinity Group, Part 2a Specific Guidance for Barristers and Advocates. The update illustrates how our attitude towards regulation is developing over time. The changes are currently pending approval by HM Treasury and, if accepted, will be integrated into the text of the main guidance. Until approval by HMT, the addendums are supplementary to the main Part 2a guidance and do not supersede it.
The amendments in the ‘Addendum to the Legal Sector Affinity Group Part 2a guidance’ cover changes made by the Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022. We have also amended Annex 1 of our guidance to reflect changes made to the Part 1 LSAG guidance relating to customer due diligence.
In addition, the authors have produced updated Frequently Asked Questions (FAQs), including changes to the FAQs on customer due diligence and real property and additional questions relating to proliferation financing and enfranchisement, and two additional typologies on real property. Both the FAQs and the typologies can be found in a separate addendum below.
Legal Sector Anti-Money Laundering Guidance
The Legal Sector Affinity Group (LSAG) comprises all the legal sector supervisors and representative bodies for anti-money laundering/counter-terrorist financing in the UK. The General Council of the Bar of England and Wales is the supervisory authority for anti-money laundering/counter-terrorist financing for its members under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (as amended). In practice this supervision is delegated to the Bar Standards Board.
With the advent of the 2017 Regulations, HM Treasury asked the LSAG to draft a single piece of guidance for their approval, to be applicable to the whole legal sector in the UK. The Legal Sector Anti-Money Laundering Guidance takes account of the changes introduced by the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 which came into force on 26 June 2017. In response to the Money Laundering and Terrorist Financing (Amendment) Regulations 2019 and the UK’s withdrawal from the EU, the Guidance has been updated. The Bar Council’s AML Guidance is also published as Part 2a of the Legal Sector Affinity Group’s Legal Sector Guidance. It should therefore be read in conjunction with that sector-based guidance.
Part 2b of the LSAG Legal Sector Guidance contains specific guidance for Trust or Company Service Providers and can be found in a separate document below.
This Guidance has been approved by HM Treasury, as well as Part 2a and Part 2b
Advisory Note for the Legal Sector on Remote working, client interaction and AML technology and Impacts of economic instability
Following the shift to remote working as a result of the COVID-19 pandemic, particular issues and risks arise for anti-money laundering/counter-terrorist financing, which this note seeks to address.
This note also addresses how economic instability can change the risks faced by the legal practitioners and how it may increase risk appetite, the risk of money laundering or lead to a reduction of requisite controls.
This note has been drafted in collaboration with the Legal Sector Affinity Group, comprising all UK legal sector supervisors for AML. It has not been approved by HM Treasury.
Advisory Notice on Chinese underground banking and funds from China
This guidance explores the key risks arising from the legal and illegal use of informal value transfer systems (IVTS) which do not use the normal banking system and/or have not complied with national currency controls. The guidance focuses on IVTS in the Chinese context, along with the circumvention of Chinese foreign currency controls. It also provides practical measures to help you mitigate these risks.
Download: Money Laundering, Terrorist Financing and the Proceeds of Crime :
Download ( PDF )Download: Addendum to the Legal Sector Affinity Group Part 2a guidance:
Download ( DOCX )Download: Addendum of amendments to the Part 2a LSAG guidance FAQs and additional typologies on real property:
Download ( DOCX )Download: Legal Sector Anti-Money Laundering Guidance:
Download ( PDF )Download: Trust or Company Service Providers Guidance:
Download ( PDF )Download: Advisory Note for the Legal Sector on Remote working, client interaction and AML technology and Impacts of economic instability:
Download ( PDF )Download: LSAG Advisory Notice on Chinese underground banking and funds from China:
Download ( PDF )Important Notice
This paper only provides professional guidance. Its aim is to assist you in understanding the obligations placed upon you by the primary legislation and the Regulations. It is not “guidance” for the purposes of the BSB Handbook A1, I6.4.
This paper cannot be regarded as a definitive statement of the law or of the effect of the law, and does not comprise, and should not be relied on as giving, legal advice. It has been prepared in good faith, but neither the Bar Council nor any of the individuals responsible for or involved in its preparation accept any legal responsibility or liability for anything done in reliance on it. For fuller information as to the status and effect of this document, please refer to the professional practice and ethics section of the Bar Council’s website here.
If you are unclear as to your obligations you must take independent legal advice from a suitably qualified legal adviser.